AUD/USD: Move below 0.6920 to vanish upside bias – TDS

AUD/USD has fallen below the 0.70 level and economists at TD Securities believe if the aussie is unable to hold this mark would mean the push to 0.7038 may have been the top of this cycle.

Key quotes

“AUD/USD was hit by a disappointing employment report overnight for June, compounded by poor revisions to the previous reading. Spot has slid back to just below the 0.70 mark to what now looks to be a key area of support.”

“We think it is pretty important that these levels hold if we are to retain our upside tactical bias in AUD/USD. Otherwise, we may start to think that yesterday’s push to 0.7038 could mark the top for this cycle. That may lead to questions over its ability to post a new post-crisis high above 0.7063 for the time being.” 

“A further dip to test 0.6940 would further reduce our conviction levels in the AUD, while a move below 0.6920 might see us throw in the towel.”